MahaRERA Tightens Grip on Non-Compliant Projects

In a decisive regulatory push, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has initiated action against 8,212 housing projects for failing to submit mandatory quarterly progress reports (QPRs) within stipulated timelines. The move underscores a sharper regulatory lens on compliance and transparency, particularly across key markets like the Mumbai Metropolitan Region (MMR).

Out of the 33,029 registered housing projects in Maharashtra, a large number did not update their January–March quarter disclosures on the MahaRERA portal by April 20, as mandated under the Real Estate (Regulation and Development) Act, 2016. Taking serious note, the authority has issued show-cause notices under Section 7, granting developers 60 days to respond and regularize filings.

The consequences of continued non-compliance are significant. Developers risk suspension or cancellation of project registration, freezing of project bank accounts, and restrictions on advertising and marketing activities. Authorities may also direct the Joint District Registrar to halt registration of sale and purchase transactions in such projects, directly impacting liquidity and buyer movement.

Region-wise, Pune accounts for the highest number of defaulting projects at 1,957. The Mumbai Metropolitan Region (MMR), including the Konkan belt, follows with 4,644 projects. Other regions include Nashik with 451 projects, Nagpur with 391, and Chhatrapati Sambhaji Nagar with 185—indicating that compliance gaps are widespread across both urban and emerging real estate markets.

MahaRERA has reiterated that quarterly progress reports are a critical disclosure mechanism aimed at ensuring transparency for both prospective and existing homebuyers. Through Forms 1, 2, and 3, developers are required to provide detailed updates on construction progress, number of units registered, funds received, expenditure incurred, and any changes to approved building plans. These filings must be certified by the project’s engineer, architect, and chartered accountant to maintain accuracy and accountability.

A key compliance framework also mandates that 70% of the funds collected from homebuyers be deposited in a dedicated project bank account, with withdrawals strictly linked to certified construction progress. Even in cases where no withdrawals are made in a quarter, developers are required to disclose fund inflows and submit a self-certified statement on the MahaRERA portal.
Highlighting the regulator’s firm stance, MahaRERA Chairman Manoj Saunik stated:

“If any developer does not update the quarterly progress report of their project despite repeated follow-ups, MahaRERA will not hesitate to cancel or keep such project’s registration in abeyance. MahaRERA is of the view that such an unpleasant situation must not arise at all.”

The current enforcement also reinforces MahaRERA’s 2022 directive, which reiterates the requirement for time-bound quarterly and annual disclosures in a prescribed format. These include updates on project status, approvals, inventory sold, and financial progress—information considered vital for safeguarding homebuyer interests.

Despite clearly defined compliance norms, over 8,000 projects failed to meet the latest reporting deadline, prompting this large-scale regulatory intervention. The authority’s action reflects a zero-tolerance approach toward non-compliance and a renewed commitment to strengthening governance, transparency, and accountability in Maharashtra’s real estate sector.

Insight

MahaRERA’s crackdown is not merely a regulatory action—it marks a structural shift in how the real estate sector will operate going forward. Compliance is no longer a procedural requirement but a defining factor of credibility. Developers who align with transparency and financial discipline will sustain and scale, while those who don’t risk being edged out of the system.

For homebuyers, this signals stronger protection and increased confidence. For the industry, it sets a new benchmark—where trust will be built not on intent, but on consistent compliance and measurable accountability.

By Sana Khan
Executive Editor, Realty Quarter
Mumbai